Organizational Change: The DVP>C Formula

When are the forces for organizational change greater than the cost of change-and how does this "formula" apply to an automotive plant in need of process improvement?
Paul Ingram  | Spring 2011
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A McKinsey & Co. consultant is asked to lead a process improvement effort at Mercedes' transmission plant in Stuttgart. However, he is surprised to find that many of the plant's employees strongly resist the idea of change. As social scientists have concluded, resistance plays an enormous role in organizational change - which in turn is one of the most difficult efforts for any leader to undertake. Through the consultant's experience at the Mercedes plant, this case teaches students about the DVP > C formula, a way of understanding the factors needed to overcome resistance to change. This reading is meant to be used with the video "Wolfgang Bernhard and the Heart of Change."

Case ID: 080412

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